The resources used to make all goods and services are the

Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $210,000 and accumulated deprecia

dezoksy [38]

Answer: Gain of $12,000

Explanation:

First off, what was the Net book value of the old sailboat?

= Cost Price - Accumulated Depreciation

= 210,000 - 84,000

= $126,000

They paid $101,000 in cash and received a trade in allowance of $138,000 bringing the value to $239,000.

What they should have received as the trade in allowance was the NBV of $126,000. Since they didn't they got a gain of,

= 138,000 - 126,000

= $12,000

Because this transaction has commercial substance, the gain would be $12,000.

6 0

2 years ago

On January 1, Concord Corporation issued $4300000, 9% bonds for $3995000. The market rate of interest for these bonds is 10%. In

Serga [27]

Answer:

The correct option is D,$292,500

Explanation:

The unamortized bond discount is the balance of the bond discount left at the end of first year when that year portion of bond discount has been amortized.

In order to ascertain the balance of the unamortized bond discount,we prepare the bond schedule showing how much was amortized in the year as follows:

Bal b/f interest expense at10% coupon payment 9% Bal c/f

$3,995,000 $399,500 $387,000 $4,007,500

The amortized interest is the difference between the interest expense based on the cash proceeds and the coupon payment calculated on the face value of $4.3 million

amortized discount=$399,500-$387,000=$12,500

Total bond discount=$4,300,000-$3,995,000=$305,000

unamortized discount=$305,000-$12,500=$292,500

3 0

3 years ago

Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices

Doss [256]

Answer:

Results are below.

Explanation:

First, we need to calculate the selling price per composite unit:

selling price per composite unit= 1,280*0.6 + 530*0.4

selling price per composite unit= $980

Now, the unitary variable cost per composite unit:

Variable cost per composite unit= 780*0.6 + 280*0.4

Variable cost per composite unit= $580

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per composite unit

Break-even point in units= 150,000 / (980 - 580)

Break-even point in units= 375

Finally, the number of units per product:

Desks= 375*0.6= 225

Chairs= 375*0.4= 150

4 0

3 years ago

Assume Japan begins with its economy running at full employment. If the Japanese government increases government expenditures th

Svetllana [295]

Answer:

D) the AD curve will shift out, causing an increase in the Japanese price level, but not change in output.

Explanation:

If the government starts to increase spending, the total income will increase, shifting the AD curve outwards. Generally this situation would increase both the general price level (inflation) and total output (AS curve). But since the economy is already at full employment, real output will increase minimally (if any increase at all). The largest effect will be felt in the rise of inflation.

3 0

2 years ago

In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance

Romashka [77]

Answer:

~ 1561.235

Explanation:

Given :

$Z=1.645$

$d = 200\ \\variance =64$

Standard deviation can be determined by the $\sqrt{variance }$

Standard deviation=SD

= $\sqrt{64}\ =\ 8$

$LT = 6\$

σ = 8

Now using the formula

$R\ =\ d \ *\ LT\ +Z\ \sqrt{LT^{2}\ +SD^{2} \ +\ d\ \sigma\ ^{2} } \\\\Putting\ the\ respective\ value\ we\ get \\R=200 * 6 + 1.645\sqrt{6 * 8^2 + 200 *1^2}$

R=1561.235

~ 1561.235

6 0

3 years ago